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DB transfer advice challenger eyes 10-day suitability reports

A new pension transfer specialist claims it will be able to produce suitability reports within 10 working days, or five working days through a “premium” service.

Pension Advice Specialists will charge £2,000 for the 10-day service and £3,000 for the premium offering.

All fees are fixed and non-contingent on the advice provided that might be to retain benefits within the scheme.

Pension Advice Specialists pension transfer advice head Craig Stokes says: “There is far more demand for DB transfer advice than supply and independent advice needs to be much more readily available for advisers and their clients. Clearly there are currently not enough people out there offering transfer advice in the right way.”

Last month pension transfer specialist O&M Pension Advice announced it will stop offering its pension transfer advisory service from 1 July.

That move followed Selectapension’s decision last year to continue providing TVAS reports for advisers, but not conduct any advice work itself.

Pension Advice Specialists considers advisers want independent advice on DB transfers following the recent closure or suspension of several transfer firms.

Royal London policy director Steve Webb says: “While clients will welcome a quick turnaround, the real delays in the advice process are almost always to do with getting accurate and complete information from schemes.”

Webb says: “With growing regulatory requirements, and the challenge in accessing professional indemnity cover, the focus is going to be on thoroughness rather than speed, though obviously if advisers can do both then it will be a bonus.”

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Unless that time period starts from the point that all required information is obtained from the scheme, it’s impossible to achieve.

    In my experience, virtually all delays are either caused by the scheme or the client not providing information in a timely manner.

  2. I agree with Duncan on this.

    I would like to see them do this from initial client contact in those turnaround times.

  3. Handy that the Pension Advice Specialists share the same building and have the same directors as Momentum Pensions, a company with offices in Malta and Gibraltar. No doubt Inspector Poirot at the FCA will be all over this ………………..

  4. I don’t understand how this will work, well I do really.

    For every DB Transfer it is likely there will be a £250 (most likely higher) pa PI charge as long as that business trades. So £2000 means in 4 years time (£1000 cost 1st year)it will have eaten way the fee, no profit! plus you have paid tax, so actually a loss.

  5. @Mrs Right and one of the directors lives in Malta and the other is also a director of Momentum pensions

  6. Jonathan Willis 6th June 2018 at 12:33 pm

    Typical England. Everything is pushed down because of downward price pressures. Companies like this shouldn’t be allowed to exist. They are essentially commoditising Financial Advice. Stack it high sell it cheap bank mentality.

  7. The fact they charge more for a “faster” service is absurd. The amount of work is variable, based on the complexity of the client’s personal circumstances. Throwing money at something can’t make the process any faster. It just screams corner cutting.

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